Business Financial Reporting

What Is Business Financial Reporting?

Business financial reporting is the process of getting the formal record of the financial activities of a business. It also entails the financial position of a business presented in a formal and detailed structure that can be easily understood by anybody. The set of documents containing the financial activities and position of a business is referred to as financial statements of the business.

Conventionally, accounting statements of a business are presented at the end of a set period of time to monitor the financial situations of the business. This aspect of the financial accounting of a business is specifically important for small and medium businesses in order to sort out many issues related to their financial positions and activities.

In order to get desired results through properly executed business financial reporting, the services of experts who know all important aspects of accounting are often specifically required. This is where EC3 comes in to help both small and medium businesses in processing their financial statements for any given period of time.

Business Financial Reporting at a glance:

Benefits of financial reporting:

It helps managers and owners of a business to make decision that concerns the business

It helps investors in determining the viability of a company

It helps in determining promotions and compensation of employees

For any kind of financial reporting you need for your small or medium business, EC3 has built a team of financial experts that can help you prepare financial reports showing the financial status and activities of your business.

Profit and statement overview

The financial statement of a business or company cannot be done without giving consideration to the profit and loss statement of such business. Profit and loss statement is also referred to as the income statements of a business. It is the official report of a business detailing the profits, incomes and expenses of the business as they affect its financial status over a certain period of time.

Income statement of a business takes into account how much is lost and gained by the business over a set period of time.

Your balance sheet

Balance sheet, also called statement of financial position, of business is the document presenting the financial status of the business as a legal entity within a given period of time. It is based on the assets owned by the business in relation to the liabilities owed by the same business over a stipulated timeframe. In other words, it is used in determining the equity of a business over a certain period of time.

Cash flow statement defined

This is the record of a business financial balance. In simple words, it is the record of cash movement and financial balance of a business that shows the amount of money that goes in and out of the business account within a given period of time.

Statement of changes in equity

This form of business reporting is quite similar to balance sheet because it also takes equity of a business into consideration. It focuses on the equity of a business over a set time. Since equity is the difference between the liabilities of a business and its assets, statement of changes in equity can also be defined as the financial reporting of a business that determines the difference in the assets and liability of the business to evaluate its financial status.

Depending on the level of accounting work done on a financial statement of a business, it can be audited financial statements or projected financial statements.

Projected financial statement, is it for you?

Projected financial statement, on the other hand, refers to formal record that shows the performance of a business over a given period of time. Balance sheet, statement of cash flow and income are all taken into consideration.

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